The High Court of Singapore has granted a court injunction that blocks or blocks the sale of a Bored Ape Yacht Club (BAYC) non-fungible token (NFT) that a person claims was wrongfully taken away from him.
NFT used as collateral
A Singapore man has won a court injunction that blocks the sale or potential transfer of non-fungible tokens (NFTs) to a Rugged Ape Yacht Club (BAYC) which he claims is entitled to. According to a report, NFT is currently in the possession of an online lender named Chefpierre.
The man, identified by Strait Times (ST) as Janesh Rajkumar, is seeking to recover BAYC 2162 NFT, which he had pledged as his security for a loan he had received from Chefpierre. Rajkumar claimed that the NFTs were wrongly taken from him.
Bored Ape Yacht Club NFTs are popular among celebrities, some of whom have paid large sums of money to acquire them. ST reports that Madonna is the latest person to become the owner of the BAYC non-fungible token, after paying 180 ETH.
RARE FEATURES OF BAYC
Detailing the uniqueness of NFTs, Rajkumar argued that collections are rare even among BAYC NFTs as it has properties that enable holders to create a more exclusive chain. Taking advantage of the rarity and high value of NFTs, Prince was able to use BAYC as collateral when borrowing.
In his arguments before the High Court of Singapore, the prince insisted on his loan agreement with ChiefPierre, stating that he was not giving up ownership of the NFTs. If he fails to make the payments on time, the prince would inform the lender, who was then to provide a reasonable extension of the repayment period.
The settlement also specified that the lender could not exercise the foreclosure option, the prince argued.
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